ResMed sees strong start

Friday, October 24, 2014

SAN DIEGO – ResMed showed strong first quarter revenue growth for the 2015 fiscal year, bolstered by the launch of new device platforms in the sleep disorder breathing and respiratory care markets.

The company reported $380.4 million in revenue for the quarter, a 6% increase compared to the same quarter last year. Sales in the Americas totaled $207.2 million, a bump of 3% from the prior quarter. Outside the Americas, the numbers also were up, with ResMed reporting $173.2 million in revenue, an 11% increase. Its net profit rose 3% to $83 million. 

ResMed CEO Mick Farrell credited the improved numbers to the success of its new products: the AirSense 10 PAP device platform and the Astral platform, a life support ventilator for the U.S. respiratory care market. The company also launched S+, the first non-contact sleep wellness tracking device.  

“We have delivered exciting offerings that begin to fulfill the promise in our core sleep apnea market with the launch of the Air Solutions ecosystem and its key enabling component, the AirSense 10 platform,” Farrell said. “We are very pleased with our strong first quarter growth and our overall results.”

Sales of the AirSense 10 are exceeding initial expectations, Farrell said, causing a modest backlog for some parts of the Americas. He expects the supply curve to catch up with demand during the second quarter.

Farrell said the company continues to focus on geographic diversification with an emphasis on China, India, Brazil and Eastern Europe. The company also is working to expand its focus on cardiorespiratory diseases and other new market opportunities. ResMed is enrolling patients in a heart failure trial and expects the data to be published in 2016. 

During the quarter, the company also repurchased 835,000 shares at a cost of $43 million. Brett Sandercock, CFO for ResMed, said the company expects to maintain an active share repurchase program during the 2015 fiscal year.